After 64 years in the heating oil business, Brown’s Oil and Air Conditioning of Needham faced a choice as it lost customers to cheaper natural gas: close or sell. Vin Brown, the second-generation owner, chose to sell, merging his company with the larger MacFarlane Energy in Dedham.
“Financially, it just became a necessity, ” Brown said. “Right now natural gas is really doing a number on the oil business.”
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Dream on if you expect oil to go down in price like natural gas. Oil follows global prices as it is easily exported. Price for natural gas will remain depressed until the United States starts building more LGN facilities to export the glut of natural gas currently on the market.
“I predict that in the next three years you’re going to see the price of oil and gas [get] fairly close,” he said. “Everybody is not changing to natural gas.”
I've been hearing this for the past 25 years...Finally, my furnace needed replacing and I converted...triple decker...annual oil bill (just for heat) $7,100. Last year...$2500. You guys really think that the current will close a $4600 gap?
I converted to Nat gas 5 yrs ago, a great move not only saving 35% year but cleaner, quieter love it. My oil dealer used to screw me with increases and then try and cut a deal when I threatened to change to another dealer-a slimey group.
Often we roll our eyes and laugh over the lack of a national energy policy but here in MA - I am amazed that so little is done on the state level, particularly when it comes to energy. Yes - I know that there are fair trade and restraint of trade laws, but in my neighborhood, blessed with small homes on large lots, at any given time there are no fewer than three knock down and then new construction on going and this pace has been in effect for years. So - out with the old Capes, ranches and small split levels - in with the not quite McMansions - but certainly larger and beautiful homes built to what the market expects at the 850K plus price point. None of these new homes come fitted with a solar panel array on the roof, few if any have geo - thermal heat / cool, few if any follow the European model of fewer / smaller windows on the north and east sides, I do not know about the heating options; I cannot imagine that in this day and age, we still follow the 19th Century ice - man model of delivery by truck of a necessary commoditiy. In a state that loves to regulate everything, how about a few modest proposals: all new residential and commercial construction over a certain square foot roof threshold must include a solar pannel segment. Yes - it adds to the cost but one could off set this with a series of national and state rebaits or tax incentives spread out over the twenty year life of the roof to render the added cost neutral or nearly so. Same thing for geo thermal when practical. All new construction would require gas heating when available on the street - if gas is not available - then there would be an added tax, of some x%, on heating oil delivered with that revenue going to the Home Heating Oil Assistance programs. Last Summer, the NSTAR gas crews were merrily trenching all over my town in a great expansion of NG services. Everywhere the street work went, the side cuts to households soon followed. My wife and I waited with anticipation for the crews to come down our block long street - unfortunately, we were not on the list.